Intel Launches Gaudi 3 Chip to Challenge Nvidia's AI Dominance

📝 SUMMARY: Intel ($INTC) made headlines on Tuesday with the unveiling of its latest artificial intelligence chip, the Gaudi 3, setting the stage for intensified competition with Nvidia ($NVDA), the current leader in AI semiconductors. Intel's new chip boasts more than double the power efficiency and one-and-a-half times the AI model running speed compared to Nvidia’s H100 GPU, signaling a significant advancement in capabilities.

The Gaudi 3 is available in various configurations, including a bundle of eight chips on a single motherboard or as a single card that fits into current systems. This flexibility, coupled with its performance metrics, positions the Gaudi 3 as a strong contender in the growing AI market. Intel has tested the chip using popular models like Meta’s ($META) Llama and the Falcon, supported by Abu Dhabi, and claims it is well-suited for tasks ranging from training to deploying AI models such as Stable Diffusion and OpenAI’s Whisper.

Despite Nvidia holding an estimated 80% of the AI chip market through its GPUs, Intel's entry with the Gaudi 3 could shake up the status quo, especially as companies continually seek to reduce the high costs associated with running generative AI models. Intel plans to make the Gaudi 3 chips available to customers in the third quarter, with major manufacturers like Dell, HP, and Supermicro expected to incorporate them into their systems.

In addition to hardware, Intel is fostering a collaborative approach in software development. By partnering with giants like Google ($GOOGL), Qualcomm ($QCOM), and Arm ($ARM), Intel aims to create open software frameworks that would allow easier switching between chip providers, challenging Nvidia’s proprietary software advantage.

As the AI chip market expands with increasing cloud provider and business infrastructure investments, Intel’s strategic innovations with the Gaudi 3 might provide the leverage needed to disrupt Nvidia’s dominance and offer a more cost-effective alternative in AI technology deployment.

🔍 SOURCE: https://www.cnbc.com/2024/04/09/intel-unveils-gaudi-3-ai-chip-as-nvidia-competition-heats-up-.html